Letters to the Editor
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1. The best revenge is a life well-lived. Trust me, the woman who planted the oleanders is miserable.
2. Let it go completely. Don't even talk to your husband about it. Smile and wave when you see her. The more that woman thinks she can get away with things like what she did, the more audacious she's going to get. Her level of nastiness will stay consistent, but her level of cunning will be directly proportional to how much resistance she thinks she'll encounter. I notice she already assumes she has your support. If she gets self-righteous enough, starts to get high on being the voice of reason and being in charge of the neighborhood, she'll end up doing something to get herself hauled away in handcuffs.
(And I second the "put a couch in your front yard" suggestion. Less to show solidarity, and more because it's Great.)